FORTIS INC - FTSCN 1.835 PERP (FTS-PR-H.CA) Stock Fundamental Analysis
TSX:FTS-PR-H - Toronto Stock Exchange - CA3495538264 - Currency: CAD
FTS-PR-H gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. While FTS-PR-H has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-H is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-H was profitable.
In the past year FTS-PR-H had a positive cash flow from operations.
FTS-PR-H had positive earnings in each of the past 5 years.
Each year in the past 5 years FTS-PR-H had a positive operating cash flow.
1.2 Ratios
FTS-PR-H has a better Return On Assets (2.19%) than 89.47% of its industry peers.
With an excellent Return On Equity value of 6.75%, FTS-PR-H belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
The Return On Invested Capital of FTS-PR-H (4.06%) is better than 94.74% of its industry peers.
FTS-PR-H had an Average Return On Invested Capital over the past 3 years of 4.10%. This is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
1.3 Margins
FTS-PR-H has a Profit Margin of 13.96%. This is amongst the best in the industry. FTS-PR-H outperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-H has declined.
Looking at the Operating Margin, with a value of 28.61%, FTS-PR-H belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FTS-PR-H's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 71.77%, FTS-PR-H belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of FTS-PR-H has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
FTS-PR-H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FTS-PR-H has been increased compared to 1 year ago.
Compared to 5 years ago, FTS-PR-H has more shares outstanding
The debt/assets ratio for FTS-PR-H is higher compared to a year ago.
2.2 Solvency
FTS-PR-H has an Altman-Z score of 0.45. This is a bad value and indicates that FTS-PR-H is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.45, FTS-PR-H is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-H has dependencies on debt financing.
The Debt to Equity ratio of FTS-PR-H (1.33) is better than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.82
WACC4.98%
2.3 Liquidity
FTS-PR-H has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-H is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS-PR-H has a Current ratio of 0.63. This is comparable to the rest of the industry: FTS-PR-H outperforms 47.37% of its industry peers.
FTS-PR-H has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-H is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, FTS-PR-H is in line with its industry, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.37% over the past year.
FTS-PR-H shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.13% yearly.
The Revenue has decreased by -0.08% in the past year.
Measured over the past years, FTS-PR-H shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
3.2 Future
Based on estimates for the next years, FTS-PR-H will show a small growth in Earnings Per Share. The EPS will grow by 4.80% on average per year.
The Revenue is expected to grow by 2.36% on average over the next years.
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.87, which indicates a rather cheap valuation of FTS-PR-H.
FTS-PR-H's Price/Earnings ratio is rather cheap when compared to the industry. FTS-PR-H is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FTS-PR-H is valued rather cheaply.
A Price/Forward Earnings ratio of 4.66 indicates a rather cheap valuation of FTS-PR-H.
100.00% of the companies in the same industry are more expensive than FTS-PR-H, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FTS-PR-H is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 4.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-H is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
FTS-PR-H's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FTS-PR-H may justify a higher PE ratio.
PEG (NY)1.05
PEG (5Y)0.95
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
FTS-PR-H has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 4.45, FTS-PR-H's dividend is way lower than its industry peers. On top of this 89.47% of the companies listed in the same industry pay a better dividend than FTS-PR-H!
FTS-PR-H's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of FTS-PR-H has a limited annual growth rate of 5.61%.
FTS-PR-H has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-H has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
FTS-PR-H pays out 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-H is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-H (3/7/2025, 7:00:00 PM)
16.03
-0.03 (-0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap8.00B
Analysts51.43
Price Target16.8 (4.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.35%
Min EPS beat(2)2.18%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.38%
Min EPS beat(4)1.71%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)9
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-10.22%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.49%
Min Revenue beat(4)-10.22%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.18%
Revenue beat(12)5
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)1.67%
PT rev (1m)-4.12%
PT rev (3m)5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.87 | ||
| Fwd PE | 4.66 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 2.06 | ||
| P/B | 0.34 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)3.29
EY20.52%
EPS(NY)3.44
Fwd EY21.46%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY48.5%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.05
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| FCFM | N/A |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
ROICexc(3y)4.12%
ROICexc(5y)4.06%
ROICexgc(3y)5.36%
ROICexgc(5y)5.34%
ROCE(3y)4.93%
ROCE(5y)4.87%
ROICexcg growth 3Y0.42%
ROICexcg growth 5Y-1.68%
ROICexc growth 3Y1.61%
ROICexc growth 5Y-0.39%
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.45 |
F-Score4
WACC4.98%
ROIC/WACC0.82
Cap/Depr(3y)245.88%
Cap/Depr(5y)249.09%
Cap/Sales(3y)38.85%
Cap/Sales(5y)39.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.53%
EBIT Next 3Y25.25%
EBIT Next 5Y16.49%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%